The Right Side

Notes from a conservative student.

  • November 2008
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Big Labor’s Big Lies

Posted by Cullin on November 16, 2008

So, now the big three automakers in America are looking for a bailout from our ever so benevolent government.  Some may call me a mystic for being able to predict that this sort of reaction from all sectors of the economy whenever we passed the first bailout package, that so far has worked so well to fix our financial crisis.  Others will just call me not an idiot, because I was able to notice that there will be a direct creation of moral hazard caused by giving money to failing companies.  But, I digress.

Now, don’t get me wrong, I love the big three automakers.  I’ve never owned a car, or even wanted a car, that wasn’t made by General Motors.  However, no amount of bailouts and government regulation to increase fuel mileage standards is going to be able to save the American hand in this sector of the economy.

The big three didn’t just stumble into this problem after this possible recession, or even after gas prices started to rise.  American automakers have been in trouble for years now because of the shady practices of UAW.  And, if we’re going to save the American production industry, we are going to have to start regulating labor unions.

Labor unions have been doing things in the market place that would quickly land many CEOs and presidents in jail if the ever tried them with their corporations.  Unions create monopolies and force their employers to buy from their stock.  They demand artificially high wages, and do this by forcing artificially low production.  They remove the ability of any competitors in the market through terrorism, and law makers turn a blind eye.

If you look at the composition of the auto market, it’s not hard to tell that UAW is what is sinking the American automakers.  When we look at BMW, KIA, and Toyota, who are all doing fairly well, considering the market right now, we see that they are all operating plants in the south with non-unionized labor.  Yes, those who work at these non-union plants take a slight pay cut, however they make sure that they keep a job that still pays well, and they make sure that an entire sector of the economy doesn’t get come crashing to the ground.

It is only going to get worse for American industry.  The democrats will almost inevitably pass legislation that removes the secret ballot when it comes to voting for a union.  This will allowing union bosses (the only ones who actually benefit from unions) to bully workers and increase the power of their union.  We don’t allow most monopolies when it comes to goods and services, why do we allow these monopolies in the Labor market?


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